GVK signs pact with ADIA and NIIF for investment in its airports holding company

NEW DELHI: GVK Airport Developers Ltd (GVKADL) and GVK Airport Holdings Ltd (GVKAHL), have signed a term sheet and exclusivity agreement with the Abu Dhabi Investment Authority (ADIA) and the National Investment and Infrastructure Fund (NIIF) for an investment in new shares in GVKAHL equating to a 49% stake. Infra Gorup GVK was looking for investors to reduce or refinance its debt by Rs 5,750 crore.

“Citigroup Global Markets India Pvt Ltd is the financial advisor to GVK for the transaction. ADIA and NIIF were selected as the preferred partners by GVK following this process. All proceeds from the proposed transaction will be used by GVK towards retiring debt obligations,” GVK said in a statement.

Group founder and chairman G V K Reddy said: “We are delighted to sign these agreements with ADIA and NIIF. The funds brought in through this proposed transaction will help us deleverage as we continue with our endeavours to create the infrastructure for a strong aviation hub in India that will provide the impetus for growth and development for the entire country. Our future focus will be on delivering Navi Mumbai International Airport, successfully monetising Mumbai airport’s real estate and building a strong airports business at GVK.”

A recent Allahabad high court judgment may, however, provide some relief with the court ruling that there shall be no tax levied in case of purchases made at duty free stores at the arrival or departure terminals.